Veeva Systems (VEEV) earnings: is there more upside for the stock?

7:58 pm ET, 26 Nov 2018

Veeva Systems Inc. (VEEV) shares are trading at $91.61, up 3%.  The company is announcing its quarterly earnings results on Wednesday after the market close. What's driving Veeva stock price? What's VEEV stock price forecast?

Veeva Systems provides cloud-based software for the life sciences industry.  Lately, the stock has performed well: it generated a return of 42% in the past year. The company has the first mover advantage in providing CRM for the pharmaceutical sector.

Investors are showing interest in the company because of the recent big clients wins.  On the other hand, a few bearish investors worry about its relatively high valuation.   Last quarter's revenue rose 25% to $209.61 million and earnings per share came at 39 cents compared to 24 cents for the same period last year.

Third-quarter results will be released after market close on November 28, 2018.  Analysts expect the company to earn 38 cents on revenue of $216.02 million.  The company beat analysts’ estimates in the previous four quarters.

What is the sentiment towards the VEEV stock? Our technical analysis shows that: 

  • The stock short-term sentiment (next 30 days) is trending positive;
  • The mid-term sentiment (3-6 months) is trending positive;
  • The long-term sentiment (9-12 months) is trending positive. 

Over the last month, Veeva Systems Inc. (VEEV) returned -3%.

Veeva Systems Inc. (VEEV) short share of float is 6.29%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock.

Veeva Systems Inc. (VEEV) average analyst price target ($96.07) is 3.93% above its current price ($92.44).

For the latest price and information on Veeva Systems Inc., please visit Finstead and search for "VEEV price" or "VEEV news".

Veeva Stock Is Down Today - But Should You Care?

10:34 pm ET, 05 Dec 2017

Veeva Systems (VEEV)

Veeva (NYSE: VEEV) shares dropped today after the CRM leader for the pharma industry beat estimates for the third quarter and offered fiscal 2018 guidance that was in line with expectations.  Should you be worried about this?

Here are a few fundamental things you should know about Veeva before you decide to trade the stock. 

Veeva Systems was the first mover in providing CRM services specifically designed for pharmaceuticals.  Veeva’s minimal client churn, substantial market share, and growing appeal outside of the life sciences space bolster the firm's position as a market leader.

Veeva currently has two business segments, Veeva Commercial Cloud, its vertically integrated CRM products, and Veeva Vault, its horizontally integrated content and data manager. The Commercial Cloud products can manage all forms of interaction between a biotech company and its customers.  Veeva has grown its biotech CRM market share to 65%. 

The firm’s Vault product is built on an internally developed proprietary platform, leading to higher margins, and benefits from substantial switching costs. This has been a boon to the firm, as increased need for regulation and quality control, especially in healthcare, warrant more sophisticated content management solutions. 

Vault QualityOne platform (its quality management system) holds appeal in regulated industries outside of life sciences (OLS), such as chemicals and consumer packaged goods. Currently, OLS clients only compose around 10 of Veeva’s 520 plus customers, however, this product has the potential to serve as a beachhead to additional OLS customers and drive solid growth over the next few years.

Veeva’s level of innovation, capacity to identify underserved industries, entrenched position, and ability to increase its total addressable market through new product launches will be critical for future growth of the company.

Over the last year, VEEV has returned +34.05%. This return is higher than Technology sector (23.50%), Healthcare Information Services industry (15.19%), and S&P 500 (19.27%) returns.

Based on Finstead analysis, VEEV price target upside is 16.25% (visit Finbot type "VEEV upside").

Veeva Systems Inc. (VEEV) Stock Guide

Updated at: 6:49 pm ET, 02 Sep 2020

Before we start: if you're looking for VEEV stock price, you can quickly find it out by visiting Finny and typing "VEEV quote". If you're looking for a quick scoop on VEEV stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "VEEV". You'll get all this info in one place. Or you can just type "VEEV news" to get the latest stock news.

Looking to buy or sell Veeva Systems Inc. (VEEV)? Interested in getting the full scoop on VEEV, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this VEEV stock guide, we'll address key questions about VEEV, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are VEEV earnings?
2. When is VEEV earnings date?
3. What is VEEV stock forecast (i.e., prediction)?
4. VEEV buy or sell? What is VEEV Finny Score?
5. What are the reasons to buy VEEV? Why should I buy VEEV stock?
6. What are the reasons to sell VEEV? Why should I sell VEEV stock?
7. What are VEEV key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are VEEV earnings?

VEEV trailing 12-month earnings per share (EPS) is $2.06.

2. When is VEEV earnings date?

VEEV earnings date is November 24, 2020.

Analyst Predictions

3. What is VEEV stock forecast (i.e., prediction)?

Based on VEEV analyst price targets, VEEV stock forecast is $233.65 (for a year from now). That means the average analyst price target for VEEV stock is $233.65. The prediction is based on 14 analyst estimates.

The low price target for VEEV is $167.00, while the high price target is $310.00.

VEEV analyst rating is Buy.

Analysis

4. VEEV buy or sell? What is VEEV Finny Score?

#{finnyScore:50}Our quantitative analysis shows 4 reasons to buy and 4 reasons to sell VEEV, resulting in Finny Score of 50.

5. What are the reasons to buy VEEV? Why should I buy VEEV stock?

Here are the reasons to buy VEEV stock:

  • The life sciences industry has been quite slow in adopting cloud-based software as compared to other industries. However, we believe that the industry is gradually realizing the benefits of cloud-based applications particularly due to the rising regulations and budgetary constraints. The cost-effectiveness of cloud-based applications over in- premise applications is attracting life science companies.
  • Veeva has been taking consistent efforts to support industry collaborations in life sciences. This is done to launch new products and market them easily. Veeva has been investing in resources to participate on a variety of development committees and industry associations groups.
  • Veeva Systems’ unique solutions include Veeva Vault, Veeva CRM, Veeva Network and Veeva OpenData. Veeva Vault is the first cloud-based content management system built specifically for the life sciences.Veeva CRM is a customer relationship management platform that offers cloud-based solutions to reach customers on any channel.
  • Veeva Systems and Accenture PLC recently announced a strategic partnership to provide Veeva Vault RIM solutions to life sciences and pharma companies. The collaboration reflects growing demand for Veeva’s solutions among major life sciences and pharmaceutical companies. Strategic deals with companies like Accenture will strengthen Veeva’s customer base which in turn will drive subscription revenues.
  • Veeva’s industry specific focus gives it a significant leverage, in our view. The company’s knowledge base about the different components of the life sciences industry is helping it to build targeted products. Product like Veeva OpenData provides customer data for all healthcare professionals (HCP), healthcare organizations (HCO) and affiliations across life sciences’ major markets.
  • Veeva Systems plans to enter the drug safety and pharmacovigilance market. Vault Safety will make Vault Development Cloud a comprehensive suite of unified cloud applications with Vault Clinical, Vault Quality, and Vault RIM. This will help life sciences companies simplify drug development.
  • VEEV quarterly revenue growth was 32.50%, higher than the industry and sector average revenue growth (0.60% and 0.89%, respectively). See VEEV revenue growth chart.
  • VEEV profitability is improving. The YoY profit margin change was 8.06 percentage points. See VEEV profitability chart.
  • VEEV average analyst rating is Buy. See VEEV analyst rating chart.
  • VEEV cash to debt ratio is 26.10, higher than the average industry (0.13) and sector (0.17) cash to debt ratio. See VEEV cash to debt chart.

6. What are the reasons to sell VEEV? Why should I sell VEEV stock?

Let's look at the reasons to sell VEEV stock (i.e., the bear case):

  • The life sciences are coping with a sluggish economy, less revenue and reduced productivity. Veeva’s industry-specific focus is also its weakness, as any sector specific movement can adversely affect its performance. Moreover, growth opportunity in the life sciences industry is slowing down as the market saturates, which can hurt Veeva’s CRM sales growth rate going forward.
  • Veeva generates a significant portion of its revenues from the International market. Hence, volatility in foreign currency exchange rates is a headwind. The company’s performance is subject to the movement in foreign currencies, particularly changes in the Euro, British Pound Sterling, Japanese Yen and Chinese Yuan.
  • Veeva faces significant competition across most of its product lines. The competitors include the likes of Oracle Corporation, Cegedim SA and IMS Health Holding in the CRM solutions market. In the content management market, its Vault product competes with products from EMC, Microsoft and OpenText.
  • VEEV stock price ($297.07) is at the 52-week high. Perhaps now is a good time to sell? See VEEV price chart.
  • VEEV average analyst price target ($233.65) is below its current price ($297.07). See VEEV price target chart.
  • VEEV short interest (days to cover the shorts) ratio is 2.93. The stock garners more short interest than the average industry, sector or S&P 500 stock. See VEEV short interest ratio chart.
  • VEEV Enterprise Value/EBITDA multiple is 118.07, which is high compared to its industry peers’ Enterprise Value/EBITDA ratios. See VEEV Enterprise Value/EBITDA chart.

Key Stats

7. What are VEEV key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for VEEV:

Metrics VEEV
Price $263.56
Average Price Target / Upside $304.05 / 15.36%
Average Analyst Rating Buy
Forward Dividend Yield 0.00%
Industry Health Information Services
Sector Technology
Number of Employees 2,171
Market Cap $44.16B
Forward P/E Ratio 95.17
Price/Book Ratio 34.41
Revenue (TTM) $1.28B
YoY Quarterly Revenue Growth 32.50%
Profit Margin 25.60%

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